Clinical transformation key to improving value
Transforming clinical, administrative and operational processes are critical components for healthcare organizations looking to deliver higher-quality care and reduce costs, Melinda Hancock and Michael Spine of Bon Secours Virginia Health Systems said to an audience at the Healthcare Financial Management Association’s ANI: Healthcare Finance Conference in Orlando, Fla.
Using Bon Secours as a case study during a Monday session, Hancock and Spine said increasing overall value requires a focus on providing safe, affordable, respectful care while achieving successful outcomes.
“At Bon Secours, our goal is to reduce cost per case by 10 percent over the next three to five years, while improving quality of care,” said Hancock. She cited three areas where healthcare facilities must make improvements: rates of complications, readmissions and mortality.
[See also: Quality: the time is now]
Targeting areas of waste is another way to reign in costs. Hancock cited a PricewaterhouseCoopers report that identified $1.2 trillion worth of waste in the nation’s annual healthcare spending, accounting for more than half of all health spending. Unnecessary tests and procedures are the biggest area of excess, according to the reasearch, followed by inefficient healthcare administration and the cost of caring for conditions caused by lifestyle choices.
In order to make successful clinical transformation, Spine said, physicians, nurses, employees and patients must all work toward decreasing waste and improving efficiencies. Administrators can encourage participation by rewarding staff through pay-for-performance and incentive programs.
Healthcare organizations need to rethink their processes, structures and technologies. Coding errors, staffing turnover, inefficient patient flow, errors in communication during patient hand-off and outdated technology are all areas for review and enhancement.
“The biggest areas of waste are also the biggest opportunities for financial improvements,” Hancock said.
